[cashflyer]

Savings bonds are marketed as "...reliable, low-risk government-backed savings products that you can use toward financing education, supplemental retirement income, birthday and graduation gifts, and other special events."

Grannies used to buy them for grandchildren because Granny remembered the Great Depression (tm), an era of pre-FDIC bank closures. They viewed savings bonds as being safe and sure.

Most of the depressed generation is reaching check-out time, so I guess the people buying today are either unaware of what a poor investment vehicle it is, or because it is still viewed as "safe", or they do it simply because young kids still really like the official look of them.